Unionmet's rights: poser over irrevocable undertaking

Singapore

MARKET watchers were puzzled yesterday after Unionmet, a Chinese maker and supplier of indium, released the results of its recent rights issue in which there was no mention or sign of an irrevocable undertaking given earlier by a substantial shareholder.

"It's very odd that the company says a substantial shareholder has backed the issue and then a month later - nothing," said a dealer. "It looks very much like the shareholder did not take up its allotment."

Unionmet first proposed its one-for-two renounceable, non-underwritten rights issue on Jan 11, when it set a price of 7.5 cents per rights share, a 3.8 per cent discount to the closing price on Jan 10 of 7.8 cents, and a discount of about 2.6 per cent to the theoretical ex-rig…